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AIF Lauds Gov. Scott’s Commitment to Supporting and Building Florida’s Manufacturing Industry

January 9, 2013

TALLAHASSEE – As the state affiliate for the National Association of Manufacturers, Associated Industries of Florida (AIF) praised Gov. Rick Scott’s announcement that he will support legislation leveling the playing field for Florida manufacturers by eliminating sales tax on the purchase of manufacturing equipment.

“AIF shares Governor Scott’s vision of making Florida the world’s premier business destination. We are eager to help the Governor improve Florida’s business climate and create an economic environment that fosters job creation,” said Tom Feeney, AIF President and CEO. “As the ‘Voice of Florida Businesses’ and representing more than 10,000 employers across the state, we look forward to assisting our members with ways their businesses can tap into the increased productivity that will result from this tax relief proposal for Florida manufacturers.”

Florida’s manufacturing industry offers untapped potential to create high-wage jobs and attract more manufacturing business to the state. This sector creates an impressive three indirect jobs for each of its existing 325,000 direct manufacturing jobs. The job multiplier achieved by implementing policies that will grow Florida’s manufacturing industry is substantial.

“Manufacturers in the U.S. currently face a twenty percent cost disadvantage compared to their global competitors,” said Aric Newhouse, Senior Vice President of Policy and Government Relations for the National Association of Manufacturers. “As they look to succeed in an ever increasingly competitive economy, it is essential that pro-growth, pro-jobs policies are the focal point of any government agenda. Lowering the tax burden on manufacturers will spur investment and job creation. Manufacturers in Florida, and across the United States, are on the verge of a renaissance – improving the business climate is critical to manufacturing employees and their families.”

Current laws, which impose sales tax on manufacturing equipment, place Florida in a non-competitive position with most states that do not impose the tax, each competing to retain and recruit this job-producing industry sector. By eliminating the sales taxes imposed on the purchase of manufacturing equipment, existing Florida manufacturers and companies looking to relocate to Florida will be on equal footing with those in other states.

Additionally, the elimination of this disadvantageous sales tax will create an incentive for capital investment, which is necessary to stimulate growth and remain competitive with neighboring states. Florida manufacturers will be able to pump more dollars into facility improvements and expansions, creating jobs along the way.